The assessee plans to engage itself in the development and sale of residential houses, generally floors/flats in India. The proposed modus operandi was that the assessee would either purchase land or it shall enter into collaboration agreements with various land owners whereby the assessee would acquire the right to develop the property and further sell the units developed thereon.
Post purchase of land/acquisition of land rights the applicant shall apply for the requisite approvals and then the applicant plans to get the construction work done by contractors as well as on its own.
Further, two agreements would be entered into by the assessee i.e., one for sale of undivided and impartible share in land; and another agreement for sale of superstructure.
Whether in case of supply of services by way of construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where entire consideration had been received after issuance of completion certificate by competent authority or after its first occupation, whichever was earlier, GST would be payable on two third of total amount consisting of amount charged for transfer of land or undivided share of land, and whole of consideration charged for supply of goods and service – Held, yes.
Whether applicable rate of GST on said two third of total amount would be 9 per cent (CGST) and 9 per cent (SGST) – Held, yes
Citation: [2018] 93 taxmann.com 494 (AAR – New Delhi)